Superannuation Death Benefit paid to estate

 Author: KaraATO(Community Support)Community Support

ATO Certified Response21 Aug 2025

Hi @Amandae28,

Yes, you're correct. While there's no inheritance or estate taxes in Australia there may be tax obligations for any money received from another person's super, also known as super death benefit.

The tax owed from a super death benefit depends on:

• whether you were a dependant of the deceased under tax law
• whether it's paid as a lump sum or income stream
• whether the super is tax-free or taxable (and whether the super fund has already paid tax on the taxable component)
• your age and the age of the deceased person when they died (for income streams).

Based on what you've said, your mothers' husband would receive the super death benefit tax free because they were a dependant under tax law.

Also, they can choose if they want to receive it as a lump sum payment or income stream from the fund.

Tax will be applied to any amounts released to you and your mother's other children if they are over the age of 18 and not considered dependants of the deceased.

I'd suggest speaking with the solicitor again for further explanation.

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